Vale and China: Partners in a new era of sustainable development 淡水河谷和中国：合作关系进入可持续发展的新时代

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For over 46 years, Vale has been privileged to play an important role in China’s growth. It all started back in 1973 with an initial shipment of 20,000 tons of iron ore, and our company has not looked back since. Fast forward to 2019, China is both Vale’s largest customer and Brazil’s largest bilateral trading partner. Vale has now shipped over 2.1 billion tons of the world’s highest quality iron ore to support China’s steel industry, amid that country’s historic economic transformation.

We are proud to reflect on that first shipment, decades ago, as a bellwether for the unprecedented collaboration between Vale and China.

回顾数十年前运往中国的第一船铁矿石，我们心中充满自豪，这一船铁矿石堪称淡水河谷与中国划时代合作开启的象征。

As China enters a ‘new era’, an era focused on improving the quality of people’s lives and the caliber of its industries, it becomes clear that ‘growth for growth’s sake’ is not a path that China will follow. And the scale of China’s population, economy, ongoing urbanization efforts, and connectivity in the global economy present us with an unparalleled opportunity to address sustainability-related issues together. This occurs most effectively when we leverage our respective strengths to produce measurable results, that generate positive impacts for all related stakeholders.

In recent years, we have witnessed Chinese leadership take bold stances on global issues - such as the environment, global warming, and implementation of the UN’s 2030 Sustainable Development Agenda. China’s progress on these fronts is very encouraging. It reflects concerns we have in common to address issues that have local, national, and global impacts.

Taking this into account, we apply a holistic approach to reducing the overall environmental footprint of the products we develop and deliver to China and elsewhere worldwide. Guided by our 2030 Goals, Vale is utilizing innovative solutions throughout the life cycle of the natural resources that we develop and deliver. In operations, these include truck-less mining, and an ore separation process utilizing natural humidity that reduces water use by 93%. In delivery, these include strategic partnerships with China that help shape our global supply chain in more environmentally conscious ways. We have joined with China COSCO Shipping, China Merchants Group, ICBC Leasing and Shandong Shipping for the use and development of the next generation of emissions-reducing, transoceanic vessels. Known as “Valemax,” these vessels employ ground-breaking technology and design, reducing CO2 emissions by 40% when compared with conventional bulk carriers.

These environment-focused innovations are underpinned by the utilization of Vale’s premium iron ore. China leverages the unique qualities of this ore – with its high iron content and low impurities – and customized options such as iron pellet feed and local blending at Chinese ports, to significantly reduce slag generation and CO2 emissions in the steel-making process.

Outside of iron ore, Vale’s base-metals production of nickel, copper, and cobalt is essential to the production of electric vehicle (EV) batteries. The “EV” market is quickly developing and will help reduce urban smog and greenhouse gas emissions - China is playing a leading role in the adoption of these technologies.

2019 – a year of significant milestones for Vale and Brazil-China relations:

2019年：淡水河谷以及巴中关系的重要里程碑

This year marks the 45th anniversary of diplomatic ties between Brazil and the People’s Republic of China, which were formalized in 1974. It is a very special milestone which Vale has witnessed and contributed to throughout the past four and a half decades.

今年是巴西与中国建交45周年，巴西与中国于1974年正式建立外交关系，淡水河谷有幸在过去45年间见证了这段历史，并为之添砖加瓦。

The remaining months of 2019 will be exciting times for Brazil and China. In October Brazil’s President plans to visit China. In November, Brazil will host the BRICS leadership summit, welcoming China’s President Xi Jinping for this important multilateral event.

These events signal the critical importance of this bilateral and multilateral relationship, allowing us to reflect on the progress achieved over the last 45 years and on the enormous potential that lies ahead. The legacy of these high-level meetings is strengthened by the government and private sector dialogue which occur in tandem, such as through the Brazil China Business Council and the BRICS Business Council – groups in which Vale is privileged to play a leading role.